Automotive MEMS Show Solid Growth; Government Mandates Are the Wild
Card, According to ABI Research

June 15, 2011 12:28 PM Eastern Daylight Time

LONDON--(BUSINESS WIRE)--Automotive safety systems are found in a growing number of vehicles, and
shipments of MEMS (micro-electro-mechanical systems) that are crucial to
their operation are increasing even faster.

Nearly 100 million airbag, tire pressure monitoring, and electronic
stability (ESP) safety systems that use MEMS shipped worldwide during
2010. They contained more than 300 million MEMS chips. In 2016, about
150 million systems are expected to be installed in vehicles, but the
number of MEMS they contain will have rocketed to over 830 million.

The reason for this difference? According to ABI Research practice
director Peter Cooney, “Safety systems are becoming more advanced and
more complex, and each new system tends to contain more sensors than
previous generations.”

MEMS generally fall into three main categories – accelerometers,
pressure sensors, and gyroscopes.

One technical trend is to integrate several sensors, or types of sensor,
on a single chip; a related trend is to make a single MEMS do double or
triple duty in the service of several safety systems. Says Cooney,
“Sensor integration will have a negative effect on MEMS sensor market
growth, which will also come under pressure from increasing market
competition.”

However more important than any of these is the single largest driver of
the automotive MEMS and safety systems market: government mandates. When
governments make safety systems mandatory (as the USA did with TPMS)
MEMS suppliers see a big benefit.”

MEMS suppliers to the automotive market are currently few. This is no
market for startups: it’s difficult to get into, and deep pockets are
required. But profits can be significant for those that succeed.

ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. From
offices in North America, Europe and Asia, ABI Research’s worldwide team
of experts advises thousands of decision makers through 40+ research and
advisory services. Est. 1990. For more information visit www.abiresearch.com,
or call +1.516.624.2500.